Hoka One One continues to drive progress at Deckers

Goleta, California-based Deckers Brands announced respectable increases in its sales and earnings for the third quarter on Thursday as, once again, its Hoka One One athletic footwear brand posted accelerated growth.

Hoka One One is proving to be a consistent bright spot in Deckers' portfolio - Instagram: @hokaoneone

For the third quarter ended December 31, 2019, Deckers reported net sales of $938.7 million, up 7.4% from the $873.8 million reported by the company in the prior-year period. The increase was 8.4% in constant currencies.

Growth was a staggering 63.6% at Hoka One One, where sales totaled $93.1 million, compared to $56.9 million in the same period in the previous year. Deckers’ largest brand, Ugg, also achieved an increase in its sales, which rose 2.6% from $761.0 million to $781.1 million.

The news was less positive at the company’s Teva and Sanuk brands, which both reported declining sales. At sandal specialist Teva, revenues decreased 25.1% to $17.2 million, while at “unconventional” casual footwear brand Sanuk sales totaled $8.5 million, reflecting a decline of 34.5%.

Both Deckers’ wholesale and direct-to-consumer channels posted increases in sales, of 8.9% and 5.6%, respectively. Comparable sales in the direct-to-consumer channel increased 4.7%.

Broken down by region, the company’s sales rose 12.7% to $645.7 million on its domestic market but fell 2.6% to $293.1 million internationally.

Deckers’ quarterly net income totaled $201.6 million, or $7.14 per diluted share, up from $196.4 million, or $6.68 per diluted share.

Year to date, the company’s net sales were $1.76 billion, compared to $1.63 billion in the same period in the previous year. Net income for the nine-month period was $260.1 million, or $9.02 per diluted share, up from $240.3 million, or $7.99 per diluted share.

“Our third quarter results were driven by three of our brands experiencing record levels of quarterly revenue, resulting in an updated outlook that reflects another year of strong top-line growth and earnings expansion,” commented Deckers president and CEO Dave Powers in a release.

“Heading into the fourth quarter, our brands are intent on maintaining the momentum seen throughout this fiscal year as we are planning continued investment in consumer engagement opportunities and compelling product introductions,” he added.

In the fourth quarter, the company expects net sales to be in the range of $392 million to $402 million, and diluted earnings per share to be between $0.35 and $0.45.

For the full fiscal year ending March 31, 2020, Deckers predicts sales in the range of $2.150 billion to $2.160 billion, while diluted earnings per share are expected to be between $9.40 and $9.50.